Understanding Carrying Costs on Rentals
Interested in investing but not sure about carrying costs?
We’ve broken down what the potential carrying costs of a unit at 478 King Street West.
This property was available this summer (2018) and is a great example of what to consider when purchasing a rental property. From purchase price to average rental income we’ve broken down what you can anticipate in carrying costs at two different down payment options.
Purchase price: $610,000
Average rental income: $2,600/month
Down payment: $160,000
(26%)
Mortgage payment*: $1,890/month
Condo fees: $480/month
Property tax: $230/month
Less average rental income: $2,600/month
Total Carrying Costs = $0/month
Down payment: $122,000
(20% – minimum for a rental)
Monthly mortgage payment*: $2,050
Condo fees: $480/month
Property tax: $230/month
Less average rental income: $2,600/month
Total Carrying Costs = $160/month
REMEMBER – If you’re going to rent out your property, a 20% down payment is required.
If you want to understand the carrying costs on your next opportunity contact Erin at [email protected]
